Illicit tobacco market shrinks for first time in years

Detailed summary

Black-market cigarettes and vapes are on the decline after half a decade of growth as enforcement action ramps up.

The amount of black-market tobacco in Australia has declined for the first time in five years, coinciding with a record number of seizures of illicit cigarettes.

Data from the Illicit Tobacco and E-cigarette Commission has revealed a 24 per cent drop in the volume of contraband product in circulation over the past financial year.

It follows five years of significant growth in the amount of illegal tobacco available on the market.

While the exact size of the black-market sector cannot be calculated, it is estimated to have shrunk by as much as 1438 tonnes.

Assistant Customs Minister Julian Hill said enforcement efforts were working.

"Every illicit cigarette seized, every store closed and every network disrupted sends the same message to criminals: we know who you are, we know how you operate, and we're coming after you and your profits," he said.

"The government's investment in enforcement to crack down on illegal tobacco, along with public health measures to curb demand, is showing results."

Australian Border Force figures show more than 730 tonnes of illegal tobacco have been seized in the first quarter of the current financial year, representing an all-time high.

The seizures included 3.75 million vapes, an increase of 18 per cent on the same time a year earlier.

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